Norwegian Air shareholders back restructuring plan

The company aims, with the help of the courts, to emerge by Feb. 26 as a smaller but more efficient carrier with fewer aircraft, less debt and more equity. If it fails, Norwegian has said it could run out of cash by the end of March. ($1 = 8.6226 Norwegian crowns)

Norwegian Air's shareholders endorsed the carrier's financial rescue plan in a series of votes on Thursday, one of several hurdles the company must clear in order to survive the COVID-19 pandemic, the airline said. The airline faces difficult negotiations with creditors in the coming months as it seeks to reduce its debt and liabilities of some 66.8 billion crowns ($7.75 billion), and must also find investors and lenders willing to put up fresh cash.

The airline earlier this month obtained creditor protection from courts in Norway and Ireland, allowing it some breathing space as it seeks to convert debt into equity. The company aims, with the help of the courts, to emerge by Feb. 26 as a smaller but more efficient carrier with fewer aircraft, less debt and more equity.

If it fails, Norwegian has said it could run out of cash by the end of March. ($1 = 8.6226 Norwegian crowns)

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